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Further Argos integration promised by Sainsburys

11 November 2016 - 10:40 by Mike Price

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Following its acquisition of Argos earlier this year, supermarket chain Sainsbury’s has this week outlined how it intends to leverage its new asset, according to Internet Retailing.

The firm intends to make more digital collection points available at its bricks and mortar outlets, meaning customers will be able to use Argos’ website to order items via safe shopping online and then collect them from Sainsbury’s when they are buying groceries.

The long term goal is to create 250 Argos collection points within Sainsbury’s stores nationwide. There are already 22 in place at the moment and a further 8 will be up and running in time for the festive shopping season.

Sainsbury’s CEO, Mike Coupe, explained that the acquisition of Argos’ parent firm was part of a plan to make life easier for its customers, while giving them more choice when it comes to the ways in which they make purchases.

Integrating safe shopping online with the in-store experience is certainly an important step towards true multichannel retail. It is also an attempt to keep up with consumer trends, which are dictating the direction the market is taking at the moment.

Sainsbury’s is not only adding Argos collection points to its own stores, but is also creating more dedicated outlets for the retail brand, with 30 set to open before the end of the year. So this is not just a drive to secure increased e-commerce sales, but also to capture more of the high street market with smaller, more compact stores.

Sainsbury’s also reported that its pre-tax profits were up by 9.7 per cent year on year, with a 2.1 per cent total increase in sales across the group. Its e-commerce sales rose by eight per cent, bringing the total revenue generated online to £1.3 billion.